Inward Foreign Direct Investment in the US: An Empirical Analysis of their Impact on State Economies

2011 ◽  
Vol 37 (4) ◽  
pp. 508-529 ◽  
Author(s):  
Kostas Axarloglou ◽  
William L Casey ◽  
Hsiang-Ling Han
2017 ◽  
Vol 2 (4) ◽  
Author(s):  
Monica Blanco Jimenez ◽  
J Valdez ◽  
Martha Fasci

Key words: Enterprises, Foreign Direct Investment, management style, Mexico, United StatesAbstract: The United States and Mexico are two countries with vast cultural and economic differences, but their bilateral relations oftrade and Foreign Direct Investment (FDl) are very close. Their geographic proximity and their membership to NAFTA have increased the US-Mexican goods trade and have multiplied the Foreign Direct Investment (FDl) inflows into Mexico by seven folds during 1988-2000. Onthe other hand, the Mexican FDI inflows into the United States even though enjoyed a steady growth during last years, but without asubstantial ncrease. Although, there are some outside oolitical nd economical fctors that have influenced this evolution ofFDI in both countries, there are some managerial fctors that have made it difficult to integrate he Mexican enterprises with the US ones. Some researches confirm that in Mexico, cultural aspects influence in all possible ways to make business. These are different from the American management style, so the Mexican enterprises that want o invest in the American market must adopt the American management system, in order to have a successful investment. This research aims to: 1) Demonstrate thgrowing mutual economic trade interdependence between Mexico and the United States, 2) ldentify in which sectors and what areas are most of the Mexican enterprises located in the United States and 3) Compare the Mexican management style with the American system.Palabras Clave: Empresas, estilo de administración, Estados Unidos, Inversión Directa Extranjera, MéxicoResumen: Los Estados Unidos y México son dos países con importantes diferencias culturales y económicas, sinembargo su relación bilateral en el comercio y la inversión es muy estrecha. La proximidad geográfica y la firma del Tratado de Libre Comercio de Norte América han incrementado el comercio USA-México y han permitido que la inversión directa extranjera Americana enMéxico se multiplique por siete veces de 1988 a|2000. Por otro lado, la Inversión Directa Extranjera de México en los Estados Unidos, aunque presenta un incremento enestos últimos años, no ha tenido un crecimiento sustancial. Existen factores políticos y económicos que han influenciado esta evolución deIDE en ambos países, sin embargo, hay otros factores como la cultura empresarial que ha sido un elemento de dificultad para integrar las empresas Mexicanas en los Estados Unidos. Algunos investigadores confirman que la cultura empresarial infuye en la manera como las empresas Mexicanas hacen negocios, la cual es diferente a la cultura empresarial Americana, entonces, las empresas Mexicanas que quieran invertir y hacer negocio en el mercado Americano, tienen que adoptar elestilo empresarial Americano para tener éxito en sus inversiones. Por lo tanto, esta investigación trata de: 1) Demostrar el crecimiento de Ia dependencia económica comercial que existe entre México y los Estados Unidos, 2)ldentificar en que sectores y donde están establecidas la mayor parte de las empresas mexicanas en los Estados Unidos y 3) Comparar el estilo empresarial mexicanos con el sistema Americano. 


Author(s):  
Larisa Germanovna Chuvakhina

The article highlights the current problems of investments in the development of the world economy, when international investment needs are significantly high. The priority is given to the issues of investment resources for achieving the goals of sustainable development of the world economy. It has been stated that for creating the effective economic policy, the countries need to attract foreign investment. The current trends in the development of global market for foreign direct investment flows are examined. The flows of global foreign direct investment in 2017-2018 are analyzed. Special attention is given to the study of the US investment policy. The reduction in US investments into the Russian economy in terms of the sanctions policy against Russia is marked. The changes in the investment policy of the administration of D. Trump in terms of strengthening American protectionism are underlined. The issues of US-EU investment cooperation are considered. The role of the US Federal Reserve in regulating the activities of foreign companies in the US market is defined. The main decisions taken at the X World Investment Forum of the United Nations Conference on Trade and Development in October, 2018 are considered. The role of investment promotion agencies is defined as one of the tools to attract foreign investments into the country's economy. The decrease in the level of international investment and increased competition between countries for attracting foreign investment is stated. The study confirms that the investment attractiveness of the country, stability of the national financial system, and legal security of business play a decisive role in attracting foreign direct investment.


Sign in / Sign up

Export Citation Format

Share Document